Sam Hutchings said innovation is a relay, not a race, and that is a fact. There is always room for improvement, and successful companies understand this. There is never a point of saturation. Instead, there is optimization. For a firm or company to achieve optimal operation and profitability, continuous and constant innovation is imperative.
Microsoft Corporation, the renowned fortune-500 software company, is one of the foremost vital players in this regard. This company had maintained relevance in the software market since the 1970s (precisely, 4 April 1975) when it started to date. This nearly four decades of significance is not incidental, and we are about to glean five essential lessons from it.
5 powerful lessons we can learn from the microsoft innovation relay cycle
1. Innovation is marathon, not 100M sprint
Since the emergence of Windows NT in 1993, Microsoft has kept building a better version of the different packages of their software. At no point in that journey did they declare having developed the ultimate program. Innovations were successive according to cropping needs.
This shows emerging traders and investors that innovations need to be more conclusive. Instead, every innovation is a small step towards the ultimate aim of maintaining relevance.
2. Incremental innovations are more effective
Innovation can be done without the overall revamping of the project. Instead, systematic improvements on existing structures are more effective. This can be inferred from the consistent positive productivity of incremental productivity for the Microsoft Corporation.
After the Windows 9x upgrade in 2005 to the 2008 Windows Update, Microsoft Corporation experienced a quantum leap of 112 million users to 500 million clients. This has also been found to be consistent with every innovation and update of each of their software packages. Moreover, this is not limited to Microsoft; it is a consistent trend with other Fortune 500 companies. This is evident in the renowned tech phenomena of PATCH TUESDAY, which Microsoft has observed every second Tuesday of the month since October 2003.
Therefore, it is established that the scale of innovation, while good, is balanced with the more significant impact of consistent and incremental development.
3. Innovations should be geared toward customer satisfaction
Another lesson to be learned from Microsoft’s Innovative relay cycle is that they are geared towards maximum customer satisfaction. This is in agreement with the effects of incremental innovations. Wholesale revamps and changes are naturally more time-spaced, making it trite to the consumers. Therefore, successful companies update features frequently to ascertain more customer satisfaction. Factually, it is garnered that users’ activity escalates by an average of 90% on any given Microsoft software on patch Tuesdays. This is because; users find extra features designed to increase the satisfaction they get from that particular product.
4. Innovations should follow emerging, sustainable trends
Productive innovations are intentional and designed with the future in mind. To ensure successful statements for the future, data-driven and meticulous observations must be made. Innovations, which follow sustainable trends and prognoses, are more likely to be durable.
Observably, Microsoft windows are upgraded with solutions to emerging problems. Windows updates seek to encourage moving trends and incorporate them into its features.
5. Data-driven innovations are much more sustainable
There are many ways to source data for cost-effective services. Currently, there are many ways to generate different types of data. Commonly, standard data points are collated and used by many companies; however, more successful companies employ custom data. Primarily, Tech and innovations are now data-driven.
Microsoft harnesses various data funnels to collect customized data on its users, which they use effectively to improve its tech services.
In conclusion, understanding and mimicking effective processes that successful companies use is a goldmine. These concepts, as outlined, will lead any emerging or established trader or investor to the true path of success. Microsoft Corporation is a successful company which has maintained relevance in the tech industry for decades.